Wednesday, June 5, 2013

Reverse Mortgages Provide Money for Retirement

Want to retire in 2013?
Consider a reverse mortgage...
Many Boomers are looking to retire but not sure how they can afford it. While savings and retirement plans may have gone down in the past decade there are still options that will allow you to retire in 2013. Many retirees have bought their home years ago and have been faithfully paying ever since. Whether your home is paid off in full or your balance is low, this home loan can turn your asset into a source of income. Speak with a mortgage banker to learn how HECM loans can help you achieve your finance goals.
Reverse Mortgage Information
• Age matters. The minimum age to qualify for a reverse mortgage is 62. This can be three to five years prior to you qualifying for full social security benefits. A reverse mortgage can carry you through those crucial years.
• Income. You don't need any! Traditional refinances require you to have an income source in order to make monthly payments. For example if you wanted to take out $100,000 from the equity of your home and use the funds to make payments - you would not qualify unless you had an income source. You do not need an income to qualify for a reverse mortgage, making it the ideal loan for retired seniors.

• Value. The current value of your home will determine how much you qualify for. Each mortgage program will have different loan to value requirements so speak with a mortgage banker to discuss your options.
• Interest rate. HECM loans can be structured a variety of ways. A borrower can select a fixed mortgage rate or a variable mortgage rate. Adjustable rates are typically tied to LIBOR. Your mortgage lender will go over the mortgage programs and interest rates with you to determine which option is right for your needs.
• Stay in your home. A reverse mortgage allows you to stay in the home you love. Instead of that home being a financial burden it becomes a source of revenue. You stay comfortable and make money.
• Pay checks. Having a reverse mortgage is like having a job that sends you a steady pay check. The checks come at set intervals in dollar amounts you can count on. The only difference is you are retired so you get paid for spending time with your family or walking on the golf course.
• Current loan. Any existing loan on your home will be refinanced into an Home Equity Conversion Mortgage. You will only have one mortgage lender, making it even easier.
• Customized plans. An experienced reversed mortgage lender will customize a loan to fit your financial needs. There are many options to choose from including rate structure, payout schedule and the amount of loan you need. It is essential that you work with a mortgage banker that regularly completes reverse mortgages to ensure you receive the best guidance and advice.
Retiring in 2013 is within your reach. Contact a mortgage banker to discuss HECM loans and learn how your home can turn into an income source. An experienced reverse mortgage lender will work closely with you to create a financial plan that puts you in a position to retire comfortably.
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